Increasing numbers of industrial parks draw foreign investment

By the end of this month, IPs in Viet Nam witnessed the setting up of 5,946 FDI projects with total registered capital of $95.9 billion while their disbursement was $55 billion.-File Photo

In September alone, the country had four newly established IPs of Thanh Hai in Ninh Thuan Province, Chu Trinh in Cao Bang Province, Chan Hung in Vinh Phuc Province and Mong Hoa in Hoa Binh Province.

In addition, three other IPs expanded their operations, including the one in Quang Tri, Nghe An and Nghi Son of Thanh Hoa, in the first nine months of the year.

The department said that from January to September, the country's IPs attracted US$8.7 billion in foreign direct investments (FDI), posting 12 per cent year-on-year increase. The FDI into the IPs accounted for 67 per cent of the country's total FDI of $11 billion in the nine-month period and 59 per cent of the total 1,400 projects.

By the end of this month, IPs in Viet Nam witnessed the setting up of 5,946 FDI projects with total registered capital of $95.9 billion while their disbursement was $55 billion.

The IPs also attracted 361 projects from domestic investors with total registered capital of VND53.2 trillion ($2.36 billion) in September. Another 97 projects increased their registered capital to a total VND9.3 trillion ($413.3 million).

These figures brought the total investment from local investors in the first nine months of the year to VND62.6 trillion ($2.78 billion), down 11 per cent from the same period last year and accounting for 70 per cent of the set target.

It said the newly registered projects during this the period were mainly in garment and textiles, electronics, manufacturing and processing sectors.

(Tan Binh Industrial Park)

Source: VIR, VNS

Foreign furniture firms shift businesses to Viet Nam

A number of foreign furniture firms have shifted their businesses from Indonesia to Viet Nam since early this year.

Viet Nam currently ranks fourth in the world, second in Asia and first in Southeast Asia in the export of wood furniture and furnishings. - Photo VEF

General Secretary of the Association of Indonesian Furniture and Crafts (AMKRI) Abdul Sobur told Republika Online of Indonesia that six foreign furniture companies had moved their factories from Indonesia to Viet Nam since the beginning of 2015.

One of the largest furniture companies of Taiwan, which invested in East Java Province in Indonesia, has also decided to shift its factory to Viet Nam in early 2016, he said.

Sobur said some Taiwanese furniture companies, which have been operating in Indonesia for three years, wanted to shift their production to Viet Nam because of labour costs and minimum wage issues.

He said the minimum wage in Indonesia had risen 150 per cent over the past three years and that these firms have decided to shift their business to Viet Nam to operate more effectively.

Abdul was quoted by Metrotvnews.com of Indonesia as saying that the Vietnamese furniture industry has earned more than the Indonesian industry in terms of export value.

"The Indonesian furniture industry earned US$2.8 billion, while Viet Nam's export value income last year was US$5.6 billion. It has reached US$7.6 billion, while our target this year has fallen to just US$2 billion," he said.

Viet Nam was being favored in the global market, he said, due to its competitiveness.

"Viet Nam has 30 percent more efficient competitiveness, compared to us," he said.

Viet Nam currently ranks fourth in the world, second in Asia and first in Southeast Asia in the export of wood furniture and furnishings.

The Vietnam Wood and Wood Product Association said it was aware of no less than 26 countries that were planning, or have made moves, to expand to Viet Nam's furniture industry, such as China, Thailand, Japan and the Republic of Korea, besides the United Kingdom.

(Tan Binh Industrial Park)

Source: VIR, VNS